SINGAPORE (Nov 2): Confidence in China-based companies listed on the Singapore Exchange has suffered considerably over the past decade because of a string of corporate governance scandals. Today, a handful of relatively large S-chips are beginning to distinguish themselves in a positive way. Notably, the two top scorers in the Services sector are Chinabased water treatment companies, achieving among the highest growth in pre-tax profit and total stock return over the three years to 2015.

The highest overall score was chalked up by CITIC Envirotech, which bills itself as a membrane- based integrated environmental solutions provider and touts China’s push towards stricter environmental protection policies. Besides the water and wastewater sector, there is also a growing focus on sludge treatment in the country.

In fact, CITIC Envirotech has delivered the strongest pre-tax profit growth over the three years to 2015 among companies classified under Services. It has also continued reporting strong results this year. For 2QFY2016 ended June, it posted a 66.9% y-o-y surge in total revenue to $140 million, bolstered by its engineering, membrane sales and water treatment business segments. Its earnings soared 585.8% to $22.8 million. For 1HFY2016, its earnings were up 220.9% to $34.9 million, on a 65.1% rise in total revenue to $239.4 million.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Related Stories

    Stay updated with Singapore corporate news stories for FREE

    Follow our Telegram | Facebook